Rupee-Dirham deal
WHY IN NEWS Two memoranda of understanding (MoU) were signed between the Reserve Bank of India and the Central Bank of the United Arab Emirates. These MoUs will take India a step closer to increasing circulation of the rupee in the Gulf region. The Details The first agreement between the RBI and the UAE Central Bank will establish a framework to “promote the use of local currencies (rupee and dirham) for cross border transactions”. The other MoU between the two central banks is aimed at interlinking their “payment and messaging systems”. This will strengthen cooperation in the payment systems area…